Seres Therapeutics(MCRB) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Seres reported a net loss from continuing operations of $15.7 million for Q4 2024, compared to a net loss of$ 34.7 million for the same period in 2023, indicating a significant improvement [49] - For the full year 2024, the net loss from continuing operations was $125.8 million, down from$ 190.1 million in 2023, primarily due to lower operating expenses of approximately $74 million [49] - Research and development (R&D) expenses for Q4 2024 were$ 12.8 million, down from $23 million in Q4 2023, and for the full year, R&D expenses were$ 64.6 million compared to $117.6 million in 2023 [51] - General and administrative (G&A) expenses for Q4 2024 were$ 12.5 million, down from $14 million in Q4 2023, and for the full year, G&A expenses were$ 53.2 million compared to $77.5 million in 2023 [52] Business Line Data and Key Metrics Changes - The company has made substantial progress in advancing its lead program SER-155, which aims to prevent bloodstream infections in allo-HSCT recipients [8][12] - SER-155 showed a clinically meaningful 77% relative risk reduction in bloodstream infection rates in a Phase 1b study [10][23] - The FDA granted breakthrough therapy designation to SER-155, indicating significant progress in its development [13][58] Market Data and Key Metrics Changes - The commercial opportunity in allo-HSCT alone is considered sizable, with potential for indication expansion to adjacent patient populations [39][40] - There are approximately 9,300 allo-HSCT procedures conducted annually in the US, with an estimated 20,000 procedures in Europe [43] Company Strategy and Development Direction - The company is focused on SER-155 and exploring partnerships to support its development and maximize its potential [17][61] - SER-155 is positioned to address a significant unmet need in preventing bacterial bloodstream infections, with plans to extend its application to other medically vulnerable groups [40][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made with SER-155 and the constructive feedback received from the FDA [58] - The company is preparing for the next study of SER-155 and expects to submit a draft study protocol to the FDA in the second quarter [21][22] Other Important Information - The company is now debt-free following the VOWST transaction, which provided$ 155 million at closing [46][47] - The cash position as of December 31, 2024, was $30.8 million, with expectations to fund operations into the first quarter of 2026 [55] Q&A Session Summary Question: Feedback from the FDA regarding manufacturing and patient enrollment - Management indicated that they received comprehensive feedback from the FDA and are in the process of refining the clinical study protocol [67][70] - The population for the next study is considered appropriate, with plans to manage variability through stratification [72] Question: Recent FDA feedback relative to expectations and Phase 2/3 study differences - Management found the FDA feedback constructive and believes more data is needed for the next study [80][84] - A Phase 2/3 study would require pre-specification and locking of certain items, which could take more time [83] Question: Safety database considerations based on VOWST experience - Management noted that the FDA has a minimum threshold of 300 patients for safety data, but discussions will evolve as more data is generated [92] Question: Potential size of the next study and additional efficacy endpoints - Management indicated that a standalone Phase 2 could provide meaningful data quickly, with various endpoints being considered, including GvHD rates [100][102]